Question for oldfx1Do you see a time or event which will stop China buying us treasuries.?
my train of thought. Last month the us announced publicly that their biggest threats to America comes from China and Russia. Economically or military. The latest budget has a massive increase to military spending. Technically China is financially subsidizing the increased military spending of its main rival. Secondly there is much talk of trade fairness from the whitehouse. Will this result in trade wars. Tariffs. Trump all ready fired shots with solar and washing machine tariffs. This I perceive as a catalyst for China to stop purchasing us debt.
All that aside. What will the fed do next recession. A recession is going to happen. Drop rates,more quantitative easing. This should have a negative affect on the US dollar. Shouldn’t it. Lower dollar. Higher cost for everything imported. Less spending power for the average American. Thus a horrible recession. Huge deficits. Huge borrowing. At what point does the rest of the world not have an appetite for a bond in a deflating economy and dollar.
Thats how I see it. If I’m missing steps in logic then I’m all ears to learn. That’s what the platforms allow us to do. Learn from each other.